| For a business company, only being the winner of a competition can ensure successful operation. Competition is the key for the success of a company, while the key to win a competition lies in the company's strategic management. "If we know where we are now and to some extent how we have got here, we can perceive where we are moving towards----if we are heading for an unacceptable result, we can change our direction on time." "A company without any strategic planning will be like a ship without helm, keeping going round but making no further step, or be as homeless and aimless as a wanderer. It is widely acknowledged by business managers, consultants and management professors that strategic planning is the most important concern of business management nowadays and will remain to be so for the next five years. At present, operational strategy has been treated as a main concern by many companies and strategic planning is having its moment again. Then for the value-added telecommunication services providers who are facing intense competition, how to gain the initiative with a firm foothold and grow healthily is a key issue to not only themselves, but also the national interests and information security. In the past two years, the flourishing 'thumb economy' has aroused a great deal of concern in the field of economics and industrial circle. Value-added telecommunication services have become the new source of economic growth and the second battlefield for competitions in telecommunication industry. According to the report by Norson Telecom Consulting, 18% of the mobile users spend more than 28 yuan sending short messages per month. It is estimated that the monthly sale of data service market of China mobile communication will amount to more than 1 billion yuan in 2003 with the annual sale rise up to 140 billion yuan, 40 billion of which will be assigned to value-added services providers. Now about 15 biggest value-added services providers hold 80% of the 40billion yuan and some of them even have a profit margin ratio of more than 50%. Mobile communication providers are like wizards who use their magic power to bring about such tremendous change in mobile communication market. However, the prospering value-added services industry has many uncertainty risks. On one hand, due to the disordered development and management vacuum in the past few years, service providers have been operating their business with short-sightedness and blindly following one another. Experts have warned, "If a business activity is not based on moral ethics, it will do no good to the society and be discarded by the society like other immoral conducts" Immoral operation of value-added services will put an end to its great expectation as a sunrise industry. On the other hand, there are over one thousand value-added services providers in domestic market of China, so competition in this market is furious. Moreover, foreign capital is eyeing this market covetously and menacingly. Whether domestic value-added services providers can survive this furious competition is not only a political and economic issue concerning people's livelihood and national security, but also a severe test that domestic service providers have to face up to in the process of development. This paper takes Company A for an example to analyze the development, industrial and competitive environment of value-added telecommunication services industry. After a thorough analysis, this paper proposes a development strategy for Company A: a strengthening strategy should be adopted to develop competitive edge and set up a rational service mix; a penetrating strategy should be designed according to the company's specific characteristics to ensure a stable and big market share; meanwhile, operating risks are decentralized by establishing business diversification strategy with integrated strategy and defending strategy as assistance and a strategy mix is thus set up. The management of a company should keep pace with times and changes. Reform onmanagement and managemen... |
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